A legal basis is being established for the rules and procedures regarding whether a non-resident legal entity or individual, for whom it has been determined that the procuring organization cannot pay the performance and/or advance security, is exempted from the obligation to provide such performance and/or advance security.
“Elchi” reports that the draft law providing for amendments to the Law “On Public Procurement” was discussed during the meeting of the Milli Majlis Committee on Economic Policy, Industry and Entrepreneurship.
When paying creditor debts arising from goods, works, and services purchased by budgetary organizations from foreign suppliers through the State Treasury, a number of institutions require performance and/or advance security from foreign suppliers under procurement contracts, and it is discovered that these securities are not provided.
Since there is no exception in the Law “On Public Procurement” regarding the non-provision of performance and/or advance security, the failure to provide these documents makes it impossible for treasury authorities to make payments, and as a result, the relevant purchase of goods, works, and services does not take place.
Taking the above into account, the draft proposes to determine whether a non-resident legal entity or individual is exempted from the obligation to provide performance and/or advance security based on a decision made by the body (institution) determined by the relevant executive authority, upon the proposals of the supervisory body and the body (institution) determined by the relevant executive authority, regarding the exemption or refusal of exemption of the non-resident legal entity or individual from the obligation to provide performance and/or advance security.
Thus, in cases where the single-source procurement method is applied and it is impossible for the relevant non-resident legal entity or individual supplier to provide performance or advance security, the difficulties arising in the State Treasury regarding the fulfillment of obligations undertaken by budgetary organizations towards those suppliers will be eliminated.